Which of the Following Is True Regarding Whether an Accepted

question 60

Multiple Choice

Which of the following is true regarding whether an accepted offer to pay part of a debt is consideration?

• A)Partial payment is consideration if a liquidated debt is involved.
• B)Partial payment is consideration if an exception applies to the general rule that partial payment is not consideration for an unliquidated debt.
• C)Partial payment is not consideration under any circumstances.
• D)Partial payment is consideration if an unliquidated debt is involved.
• E)Partial payment is consideration under all circumstances.

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Definitions:

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Operating Income

The profit realized from a business's core operations, excluding taxes and interest expenses.

Contribution Report

A document or statement that details the contributions made towards specific goals or projects, often used in fundraising or accounting contexts.

Variable Manufacturing Costs

These are costs that vary directly with the level of production output, including materials, labor, and certain overheads.